Moody's has placed Sri Lanka's Ca long-term foreign currency rating on review for an upgrade, the credit ratings agency said on Wednesday, following the government's bond-exchange offer that aims to complete the restructuring of international bonds.

Sri Lanka’s central bank said it will start using a single benchmark interest rate to manage monetary policy, starting from its next update on Wednesday, replacing its current system of two rates.

Sri Lanka's central bank set a new single policy rate of 8% on Wednesday, easing monetary settings below previously used benchmarks, in an effort to shore up the island nation's fragile recovery from a deep financial crisis.